ROFR Thread July to Sept 2022 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[flipflopmom]

Day 35 here. Considering sending a message today...

Did you ever hear anything? I have a PVB in ROFR too so I’ve been watching the posts from people sent in this month.

 

[BWV Dreamin]

I have 185pts. at VGF that went to ROFR ( I am the seller). My thirty days will be 8/29.

 

[hogwartsdropout]

It's a good day for CCV

hogwartsdropout---$173-$27075-150-CCV@WL-Jun-0/21, 165/22, 150/23-Seller pays closing- sent 7/15, passed 8/15!

 

[disjseag]

It IS a great day for CCV! Just got notice that we passed too!

disjseag---$165-$27600-155-CCV@WL-Dec-0/21, 155/22, 155/23- sent 7/16, passed 8/15

 

[christophles]

I'd also be looking at the almost 4 to 1 ROFR to direct sale ratio at SSR as well. They've bought back around 120,000 points YTD, but only have direct sales of about 30,000.

There's only been 250 points sold direct that's been posted so far this month for SSR.

 

[The_MT]

I couldn't resist! Pretty sure the ROFR monster will enjoy this tasty snack

The_MT---$110-$6015-50-SSR-Mar-0/21, 0/22, 25/23, 50/24-Delayed Closing- sent 8/15

 

[theMoreDisneytheBetter]

It IS a great day for CCV! Just got notice that we passed too!

disjseag---$165-$27600-155-CCV@WL-Dec-0/21, 155/22, 155/23- sent 7/16, passed 8/15

THANK YOU for taking this one. My mom was obsessed with it, but I can't stomach the idea of point contracts not in increments of 25 (50 is preferred!).

Congratulations! It's an amazing resort.

 

[disjseag]

Always

THANK YOU for taking this one. My mom was obsessed with it, but I can't stomach the idea of point contracts not in increments of 25 (50 is preferred!).

Congratulations! It's an amazing resort.

Glad to help!! We love WL so this was a perfect choice for our first contract. So excited to stay as members!

 

[kmc33]

I am the seller and just learned that Disney decided to take take contract. How does this affect our sale?

kmc33---$177-$9563-50-BLT-Jun-0/21, 30/22, 50/23, 50/24-sent 7/19-taken 8/15

 

[CarolynFH]

I am the seller and just learned that Disney decided to take take contract. How does this affect our sale?

kmc33---$177-$9563-50-BLT-Jun-0/21, 30/22, 50/23, 50/24-sent 7/19-taken 8/15

As the seller, you’ll receive the same amount you agreed to with the previous buyer. Nothing has changed except the name of the buyer. @Sandisw has experience and can speak to the process and timeline.

 

[Flynn's Gal]

The ROFR lady has been cranking out the decisions.

 

[LadybugsMum]

I am the seller and just learned that Disney decided to take take contract. How does this affect our sale?

kmc33---$177-$9563-50-BLT-Jun-0/21, 30/22, 50/23, 50/24-sent 7/19-taken 8/15

Nothing has been affected for my contracts except that Disney is now the buyer. They wait until ~7 days out from the closing date to send your closing docs. Technically my closing was today and my closing docs were received this past Thursday. I'm waiting for the deed to be recorded on the Orange County website. I will hopefully receive my funds by wire transfer soon after. You can have them send a check, but I prefer the transfer since we'll be traveling when it would be sent.

 

[Unclelude]

Yeah...

56 days?! Woah. Wonder why yours took SO long.

... From earlier.... Someone asked about checking in on contract....

I would ... I'm in the middle of my own little horror story... I checked in at 30 days and it turned out something got screwed up and my offer never got sent. Reset to zero... I'm pushing 20(50) days now... I know this has to be super uncommon, but worth a check in.

It would be cool if there was a status widget, like when you order a dominos pizza ... "offer received -> randomizing order -> analyzing -> wait more -> ROFR!"

 

[Sandisw]

I am the seller and just learned that Disney decided to take take contract. How does this affect our sale?

kmc33---$177-$9563-50-BLT-Jun-0/21, 30/22, 50/23, 50/24-sent 7/19-taken 8/15

Nothing different except they won’t get it closed until much closer to your closing date. I got papers a day or two before.

Once my deed was recorded it took about 10 days or so to have the funds in my account and it was almost two weeks or so before the contract left my dashboard.

 

[Spinster Travel]

Nothing different except they won’t get it closed until much closer to your closing date. I got papers a day or two before.

Once my deed was recorded it took about 10 days or so to have the funds in my account and it was almost two weeks or so before the contract left my dashboard.

Interesting point that it took Disney nearly two weeks to remove the points from your Dashboard that they just purchased for themselves. There is a lot of talk around how long it takes for points to be removed from the seller and deposited into the buyers "account". I have never complained about that timeline; have always just accepted it as the price to pay for the awesome savings, but it does make me feel better that they take the same amount of time for themselves as they place on the rest of us!

 

[Brian Noble]

I don't want to spend X points at 11 months and then if I want to switch at 7 months switch to something cheaper. It can really screw up banking and borrowing.

As long as you aren't borrowing for the 11 month reservation, you should have plenty of time to bank any leftovers, right? Even if you do borrow a few, those will still end up going to the 7-month booking.

It's definitely not ideal, but it is one way to handle things. Another possibility is to book a smaller "home" unit, or maybe a slightly shorter trip.

Signed: Enablers-R-Us.

Yeah I know they don't HAVE TO, have to, but... they have to.

I admit I'm at a loss to explain this. Why buy high to sell low? I mean, I can imagine someone is doing this, but is Disney really that hard up for a use to which to put capital? It's not how they've preferred to spend it in the past, they've only been yanking up the sold-out resort prices, and there are lots of other things that have a higher return. Cruise ships are one example, but they are already building two more Wish-sized ships. Theme park expansions are another but they are already doing that in all of the non-US parks (after spending a ton expanding those with Galaxy's Edge Times Two), so maybe they really are hard up for where to spend it. Disney+/ESPN+/Hulu can only light so much money on fire at a time. If they really get hard up, they could just buy back their stock.

This is why I don't have or want an MBA I guess, making me the ugly duckling in my family of titans of industry.

The other possibility I can think of is that they believe that they can put those points to use by expanding their rental inventory pool during this period of very high demand. This makes a lot of sense especially if they are expanding their pool of studio rental inventory, because that's where the leverage is. But, they run the risk of holding the bag if the bottom falls out, and rental demand drops right along with buying demand---and it sure seems like that will happen eventually.

Maybe the decision maker figures that will be someone else's problem. I don't know.

And, I could end up with egg on my face and they will do exactly as you predict: ROFR near the top of the market only to fire-sale them when they need to move inventory at a lull. But it just seems so out of character* not only for DVC but for any timeshare developer.

----------------
*: See what I did there?

 

[Brian Noble]

Coda: I suppose one other possibility is that they expect there to be a gap between Poly 2 on-sale and Riviera sell-out, and this is the way to bridge it. Bundling these "used" points in a trust-style product overlaid on the DVC system has some upside if they get into that situation.

 

[Nursemanit]

I think they are stashing cash in ROFR to inflation proof their assets. Note they are not buying back any 2042 resorts.

( OKW is a 57 to them)

 

[CaptainAmerica]

As long as you aren't borrowing for the 11 month reservation, you should have plenty of time to bank any leftovers, right? Even if you do borrow a few, those will still end up going to the 7-month booking.

It's definitely not ideal, but it is one way to handle things. Another possibility is to book a smaller "home" unit, or maybe a slightly shorter trip.

Signed: Enablers-R-Us.

Well there's also the side-fact that I simply don't like most of the resorts with heavy charts (apart from Aulani, which is obviously beside the point). I don't like RIV, I don't like VGF, I'm neutral on BLT, and I wouldn't want to own Studio-only Poly. That makes Poly2 the only one I'd even consider.

I ran the scenarios when I was considering VGF's launch incentives for SAP. But typical use for me would be a 1BR for 8 nights in non-Easter April. That would run me 395 points to hold the dates at VGF, which would be 82 excess points if I were to switch to AKV Savanna at 7 months, or 130 excess points to switch to AKV Standard. I suppose I could hold the dates with a VGF studio but I'd be frustrated by the risk of what I'd consider paying more for less.

I admit I'm at a loss to explain this. Why buy high to sell low?

I don't think they would be. They're buying AKV at $125 to $145, and even a "fire sale" to clear their balance sheet would probably be around $155 for large add-on contracts and $185 for smaller New Member contracts. Those aren't huge margins, but they're easy sales.

Theme park expansions are another but they are already doing that in all of the non-US parks (after spending a ton expanding those with Galaxy's Edge Times Two), so maybe they really are hard up for where to spend it.

I think there's some momentum for significant Domestic theme park expansion. I don't have anything concrete, but there have been rumblings in the business press and elsewhere.

The other possibility I can think of is that they believe that they can put those points to use by expanding their rental inventory pool during this period of very high demand. This makes a lot of sense especially if they are expanding their pool of studio rental inventory, because that's where the leverage is. But, they run the risk of holding the bag if the bottom falls out, and rental demand drops right along with buying demand---and it sure seems like that will happen eventually.

I think this is very likely, but it only makes sense if it's a short-term play. If cash inventory were expected to be more profitable than points inventory in the long term, they wouldn't be building Poly2 as a DVC tower, they'd be building a new hotel some place. But yes I could absolutely see them saying "we can sell villas at rack rates right now, let's strike while the iron is hot." Then, when we get back to a "normal" period where villas and deluxe rooms need a 25% discount to move inventory, the pendulum swings the other direction.

And, I could end up with egg on my face and they will do exactly as you predict: ROFR near the top of the market only to fire-sale them when they need to move inventory at a lull. But it just seems so out of character* not only for DVC but for any timeshare developer.

On this, I think you're mischaracterizing my position on cause-and-effect. I don't think they're buying AKV/SSR/OKW to juice future sales during a lull, I think they're buying AKV/SSR/OWK to juice RIV/VGF sales now.

Speaking only for myself, I love AKV and hate VGF, and I'm considering buying VGF direct anyways because they've ROFR'ed AKV to within an inch of its life. Someone who hates VGF les than I do could easily be persuaded by ROFR-induced high resale prices to skip the hassle and buy direct.

 

[kmc33]

As the seller, you’ll receive the same amount you agreed to with the previous buyer. Nothing has changed except the name of the buyer. @Sandisw has experience and can speak to the process and timeline.

Nothing has been affected for my contracts except that Disney is now the buyer. They wait until ~7 days out from the closing date to send your closing docs. Technically my closing was today and my closing docs were received this past Thursday. I'm waiting for the deed to be recorded on the Orange County website. I will hopefully receive my funds by wire transfer soon after. You can have them send a check, but I prefer the transfer since we'll be traveling when it would be sent.

Nothing different except they won’t get it closed until much closer to your closing date. I got papers a day or two before.

Once my deed was recorded it took about 10 days or so to have the funds in my account and it was almost two weeks or so before the contract left my dashboard.

Thank you for the quick responses! I thought we should get the same price, but I wanted to make sure, because I know Disney pays less if you try to directly sell back to them.
Do you still get the documents notarized as you do with a private buyer?